HDFC Bank Board Approves ₹60,000 Crore Bond Issuance Renewal Amid Growth Concerns

22 Apr 2024 , 02:01 PM

HDFC Bank’s Board of Directors approved the annual renewal of bond issuance, totaling up to ₹60,000 Crore over the next twelve months via private placement mode.

Currently, HDFC Bank shares are trading at ₹1515.40, reflecting a 1.04% decline from the previous close, with a decline of over 10.23% in the past year and 10.76% since the beginning of the year.

In the previous year, the bank’s board sanctioned bond issuance up to ₹50,000 Crore. The decision to increase bond issuance by ₹10,000 Crore in FY25 is attributed to sluggish deposit and credit growth.

HDFC Bank witnessed a 26.4% year-on-year growth in total deposits (amounting to ₹23,79,800 Crore) and a 55.4% year-on-year increase in gross advances (reaching ₹25,07,800 Crore) as of March-end 2024.

The bank plans to raise funds through Long-Term Bonds (for infrastructure and affordable housing financing), Perpetual Debt Instruments (as part of Additional Tier I capital), and Tier II Capital Bonds, as stated in its regulatory filing.

The annual bond issuance renewal is subject to approval from the bank’s shareholders and other applicable regulatory authorities.

HDFC Bank Limited, also known as HDFC, is an Indian banking and financial services company headquartered in Mumbai. It holds the distinction of being India’s largest private sector bank by assets and the world’s sixth-largest bank by market capitalization as of January 2024.

Recognizing its systemic importance, the Reserve Bank of India (RBI) has classified HDFC Bank as a Domestic Systemically Important Bank (D-SIB), alongside State Bank of India and ICICI Bank.

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